In which legal structure for organizations are owners never responsible for the company's assets or debts?
A) sole proprietorship
B) partnership
C) corporation
D) LLC

Question

Quizplus · Accepted Answer

In a corporation, the owners (shareholders) are not personally liable for the company's debts or liabilities. The corporation itself is a separate legal entity and its liabilities are limited to its assets. In contrast, sole proprietors and partners in a partnership can be held personally responsible for the debts and obligations of the business. LLCs offer some limited liability protection, but their owners may still be personally liable in certain situations.

In Which Legal Structure for Organizations Are Owners Never Responsible